The Building Tradesman Newspaper

Friday, October 04, 2013

By The Building Tradesman

By Dante Atkins

It's a common refrain among conservative economists and politicians: If only
government would end its interference in the affairs of private enterprise, the
efficiencies of the free market would buoy the economy, lead to high profits and
in turn result in higher wages for everyone.

This argument is used to defend corporate-friendly policies of all stripes,
including deregulation, opposition to living wages and worker safety
protections.

While conservative governments have strong objections to imposing rules and
regulations on employers, they have no problem setting stringent rules and
regulations on the labor unions that seek to represent the interests of workers.
The most usual imposition of regulations on labor comes in the form of so-called
"right to work" laws, which forbid labor unions from requiring dues from the
workers they represent. Ultimately, the objective of these laws is to defund
unions by allowing represented employees to get away with being "free riders" –
thus weakening their position across the bargaining table as well as making it
harder for labor to compete in the political marketplace of ideas.

Ultimately, the objective of conservative governance is to give every
advantage possible to employers while simultaneously restricting the rights of
employees to organize or redress grievances. And in an economic system where
corporations and employee associations have traditionally antithetical and
combative relationships, these two principles go hand-in-glove.

But what happens when Republican ideology has to confront a new paradigm: one
of intentional cooperation between employers and workers that seeks to improve
efficiencies and ensure that everyone enjoys the profits of productivity? Hint:
Intellectual consistency shouldn't be a first, second or even a third
choice.

In 2011, Volkswagen opened an assembly plant in Chattanooga, Tennessee,
continuing a trend of automakers choosing to build plants and facilities in the
South to take advantage of the possibility of cheap labor and government
hostility towards labor unions. But Volkswagen is a German company, and they do
things a little bit differently from their American, Japanese and Korean
counterparts. See, European companies are governed by the European Works Council
Directive. which requires that workers be given the right to consult on
management decisions at larger multinational companies in the European
Union.

According to the United Auto Workers, every major manufacturing plant for
Volkswagen has representation at the company's Global Works Council, except for
the recently opened plant in Tennessee – a fact which did not sit well with the
company’s worker representatives. This dissatisfaction led to discussions about
creating a works council in Chattanooga. But because of the particularities of
labor law in the U.S., creation of such a Works Council would require the
participation of an actual labor union. The most natural fit? The UAW, of
course. And how are Tennessee's Republicans reacting? Why, just about how you'd
expect at the mention of a union having a prominent role in their state.

Tennessee Gov. Bill Haslam said that some auto suppliers considering moving
closer to Volkswagen's Chattanooga plant may balk if the United Auto Workers
succeeds in unionizing the factory.

“(VW) wants more suppliers closer to them. We've worked really hard to do
that. A lot of those suppliers are saying, 'If the UAW comes into the plant, I
don't know if we'll be as close as we would,’”the governor said.

Haslam, speaking to Times Free Press reporters and editors, said business
recruitment to the state is being hindered by the UAW's organizing efforts at
the plant.

“I've had several folks recently say that if the UAW comes, that would dampen
our enthusiasm for Tennessee,” he said. “They feel like, 'We're looking at
Tennessee because it's a right to work state.’”

These comments were at least somewhat measured in tone and content. The same,
however, cannot be said for the comments of Republican Sen. Bob Corker: “For
management to invite the UAW in is almost beyond belief,” Corker said. “They
will become the object of many business school studies – and I’m a little
worried could become a laughingstock in many ways – if they inflict this
wound.”

Corker, who played a large role in persuading Volkswagen to build its lone
U.S. assembly plant in the city where he was once mayor, said he hopes the
company pulls back from its decision to engage in talks with the UAW.

“We’ve talked to management, and to me it’s beyond belief that they’ve
allowed this to go that far and displayed this kind of naivete that the UAW is
somehow different than they were years ago,” Corker said.

Now, keep in mind that Volkswagen, far from sputtering because of its close
relationships with its workers, surpassed both General Motors and Toyota in
annual profit in 2012. And yet, Gov. Haslam has seen fit to try to tell one of
the world's most successful companies how to run its business, while Sen. Corker
has taken the bold step of insulting one of his state's best-known employers by
calling it a “laughingstock.”

Fortunately for the workers, they saw things differently: A majority of
workers at the plant have now signed cards favoring UAW's representation in
creating a European-style works council at the plant to provide the workers a
voice in issues like job security and working conditions.

On one hand, this story is notable because it shows that Republican
politicians have absolutely no problem telling private companies what to do when
it suits their ideology. But even more importantly, the creation of a Works
Council system in one of the most unexpected places in the country is
introducing a new paradigm into the labor movement where workers and management
work with co-determination and collaboration to ensure a positive result for all
stakeholders. And the last thing Republicans want is for that to spread –
especially through their precious "right to work" territory.